(Yicai Global) July 7 -- Anhui Anli Material Technology Co. [SHE:300218] will invest USD3 million to set up a joint venture in Vietnam to produce artificial leather, synthetic leather and polyurethane composite materials.

Anli will take a 60 percent stake in the joint-venture company.

It will team with two Hong Kong footwear production and trading companies to found a company making these eco-functional faux materials in the Vietnam-Singapore Industrial Park in Binh Duong, Vietnam, Anli said in an announcement yesterday.

Total project investment is expected to reach USD22.05 million, per the announcement. After the factory reaches its designed capacity it will have an annual output of 12 million meters and generate average annual sales revenues estimated at approximately USD54 million (CNY360 million), with an average annual profit of about CNY19.8 million.

Top international well-known brand clients engaged in the downstream industries of synthetic leather production have built factories in Vietnam in recent years, including manufacturers of footwear, sofas, furniture, balls and electronic products, and Vietnam has become the biggest export destination for China's artificial and synthetic leather, said the announcement. Building factories in Vietnam will help Anli get closer to its market and customers, thus better serving its domestic and international brand clientele.